Working where others go on holiday – how ‘workations’ are changing the property market

For many professionals, it has long been more than just a dream: working where others go on holiday. What used to be considered the exception is now increasingly becoming a key factor in choosing a job. The so-called ‘workation’ model – that is, working remotely from abroad – is evolving from a trend into a genuine paradigm shift. And this shift has the potential to bring about lasting change in the property market.

In this article, we take a look at the latest figures, analyse the implications for office and residential property, and examine how investors and property owners can strategically adapt to these changes.

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Latest figures: Workation is not just a trend, but a reality

A recent PwC study from 2024 shows just how far this shift has already taken place:

• 57 per cent of employees regard a workation scheme as an important factor when choosing an employer.

• 30 per cent would even turn down a job offer if this option were not available.

• In the 18–29 age group, 45 per cent would turn down an offer that did not include a workation option.

Already, 51 per cent of those surveyed have the opportunity to work from abroad – an average of 40 days a year. By way of comparison, the figure was 30 days the previous year.
The trend is clearly on the rise.

Workation is therefore not a short-lived lifestyle trend, but a new reality of work that companies, cities and property developers must increasingly take into account.

Impact on office property: Better to be David than Goliath

The traditional notion of a large corporate headquarters with thousands of square metres of office space is becoming less relevant.
Companies whose staff regularly work remotely or from abroad will no longer need vast spaces in future, but rather compact, highly functional hubs.

These serve primarily as venues for creative collaboration, client meetings and team events. The focus is shifting from a permanent presence to occasional meetings.

What does this mean for owners and developers of office property?
Anyone planning or refurbishing office buildings today should bear the following points in mind:

• Modular floor plans: Spaces must be able to be divided, combined or repurposed.

• Flexible building services: Building services should allow for variable room layouts.

• Efficient room depth: A clear structure is crucial for the feasibility of modern ways of working.

Office buildings that offer this flexibility will remain in demand in the long term – particularly in central locations, where companies are seeking creative spaces for collaboration.

New opportunities in the residential property market

A ‘workation’ means that people live and work in a different location for a few weeks or months. They need flats equipped accordingly – furnished, with a reliable internet connection, an ergonomic workspace and leisure facilities nearby.

This opens up entirely new prospects for investors:

• Converting older hotels or guesthouses into modern remote-working apartments.

• Upgrading blocks of flats into furnished serviced apartments.

• Marketing via platforms such as Airbnb, Booking.com or specialist co-living portals.

Such concepts can work both in traditional holiday regions and in up-and-coming cities that are positioning themselves as ‘hidden champions’ for digital nomads.

Three up-and-coming workation destinations in Europe

1. Málaga, Spain

According to the ‘Service Executive Nomad Index’, Málaga is now one of the world’s most popular cities for remote working – just behind Dubai.
The city scores highly thanks to its reliable internet infrastructure, high quality of life, pleasant climate and a growing international network. The property market is clearly benefiting: rising prices, growing demand for temporary accommodation and co-working spaces.

2. Tallinn, Estonia

Tallinn is regarded as a digital pioneer in Europe. The city offers comprehensive, free Wi-Fi, digital public services and a tech-savvy environment.
By 2025, average property prices are expected to be around 3,000 euros per square metre – with a projected annual increase of 3 to 7 per cent. Particularly noteworthy: the proportion of foreign investors already stands at 12 per cent.

3. Dubrovnik, Croatia

Historic charm, a Mediterranean coastal location and a moderate cost of living are making Dubrovnik increasingly attractive to remote workers.
Although comprehensive market data is still lacking, the rising number of furnished short-term lettings and new co-working spaces speaks for itself.
The region is gradually developing into a hotspot for temporary work stays.

Financing and exit strategies: flexibility as a competitive advantage

Flexible usage concepts also require new financing approaches.
Banks and institutional investors now view modular property projects much more favourably than they did a few years ago – particularly when they are involved at an early stage in the design phase.

A diversified tenant mix comprising start-ups, project teams and temporary residents can reduce the risk of vacancies and signals stability.

The exit strategy should also be considered from the outset.
The main buyer groups for such properties are:

• ESG-focused funds,

• operating chains in the co-living or flex-office sector,

• and family offices with a long-term focus on cash flow.

Properties that are already designed with these buyers in mind – for example, through ESG-compliant reporting, flexible floor plans and documented letting history – usually achieve a higher multiple and a quicker sale in the end.

Conclusion: Workation is changing the rules of the game

Workation and flexible usage concepts are not a passing trend, but a lasting shift in the world of work and property.
Companies and investors who recognise and embrace this shift will secure a clear competitive advantage.

Anyone investing today in modular office spaces, smart locations and flexible living solutions is positioning themselves as a winner in a property market that is rapidly adapting to new realities of life and work.